According to www.magzter.com, the International Energy Agency projects India’s coal demand will increase by 4.2% in 2026, as part of a broader global rebound in coal consumption driven by elevated natural gas prices and geopolitical disruptions.
Global Coal Demand Set for Record High in 2026
The IEA expects global coal demand to rise 1.2 percent in 2026 to a record 8.94 billion tonnes. This marks a reversal from its earlier forecast of a decline, reflecting sustained reliance on coal-fired power generation amid energy market volatility.
The agency attributes this upward revision to multiple concurrent pressures: higher natural gas prices, geopolitical instability affecting energy supply routes, and weather-related electricity demand fluctuations. These factors collectively reinforce coal’s role in near-term power security, particularly in fast-growing economies.
Notably, the September 11, 2026 edition of The Business Guardian highlights that India’s projected 4.2% growth is among the strongest national increases cited in the report — underscoring the country’s continued dependence on coal for baseload electricity generation.
2027 Outlook Hinges on Gas Market Recovery
Should conditions ease in key energy corridors, the IEA forecasts a modest contraction in global coal demand in 2027, with a projected decline of 0.4 per cent to 8.91 billion tonnes.
This potential reversal depends critically on the recovery of liquefied natural gas (LNG) flows through the Strait of Hormuz to pre-conflict levels and a corresponding moderation in natural gas prices below 2026 averages.
The report explicitly ties the 2027 outlook to geopolitical resolution: if Middle East tensions subside and gas markets stabilize, coal’s short-term advantage in cost and availability would diminish, prompting a slight pullback in global consumption.
Source: magzter.com
Compiled from international media by the SCI.AI editorial team.
